MO HB1865

Repeals section 143.451 and enacts two new sections (143.451 and 144.055) relating to corporate income taxation and sales tax exemptions.

Section 143.451 establishes methods for calculating Missouri taxable income for corporations, including allocation rules for income from transactions partially within and partially outside Missouri, with options for using sales-based or destination-based apportionment formulas.

Section 143.451 provides special rules for investment funds service corporations to determine qualifying sales based on the residence of fund shareholders in Missouri using share ownership percentages.

Section 144.055 exempts electrical energy, gas, water, coal, and other utilities purchased by restaurants, cafeterias, bakeries, grocery stores, and similar food preparation facilities from state sales and use tax when used in manufacturing, processing, or preparing food for sale.

The utility tax exemption in section 144.055 does not apply to local sales taxes as defined in section 32.085.